MSC Malaysia Research & Development Grant Scheme (MGS) 21 April 2011
Innovation Ecosystem “The MSC is a gift to the world, a global test-bed of innovative ICT products” “Investments in R&D in knowledge-based industries is the key for Malaysia to keep up with or stay ahead of its competitors in ICT” Tun Dr. Mahathir Mohamad “Ecosystems bringing together talent, technology, venture capital and universities, supported by risk-taking ethos, will remain the best incubators of innovation” (Source: EIU)
Funding Initiatives MSC Malaysia Research and Development Grant Scheme (MGS) o To encourage and increase research and development activities by MSC Malaysia Status Companies to produce innovative and commercial viable products/solutions/services o Launched in 1997 o MGS Fund size of RM 10 Million for the year of 2011 – 2012 MSC Malaysia Innovation Voucher o To be launched on 4 May 2011.
MGS Under RMk10 Eligibility
Possess a valid MSC Malaysia-Status certification Malaysian shareholding of at least 51% Fulfill location requirements of MSC Malaysia Status Paid up capital of at least RM100,000
The MGS will provide a grant of up to 50% of the approved total project cost or RM1.2 million whichever is lower. The amount of the grant approved will be determined by the merits of each case.
Each project is funded for up to 1year only. IP creation
Mandatory – 3 IP (i.e. patent, trademark, copyright, industrial design). Recommend prior art search for patentability
A non refundable processing fee of RM5,000 is payable upon submission of the final application documents.
Mandatory – submission of latest financial audited statement. Must undergo SCORE+ assessment with result of Tier 2 or 3 or 4 (rating of at least 1.0)
MGS Under RMk10 List of Technology Areas Cloud Computing Context Aware Computing Creative Multimedia – Animations, Games and Enhanced User Experience Creative Multimedia - Augmented Reality Creative Multimedia - Digital Audio and Video Electronic Design & Embedded Systems Fabric-Based Infrastructures and Computers Green Computing Imaging and Display Technology Integrated Circuit Design
Location-Based Services Mobile Applications and Media Tablets Next Generation Communication (HSPA/LTE/4G) Next Generation Analysis Networking - Ubiquitous Computing Robotics and Intelligent Systems Security - Social Network Security Security - Mobile Device Security Security - Anti-Hacking Technology Social Analytics Social Communications & Collaborations Wireless Technology (Embedded sensors, RFID, video delivery)
MGS Under RMk10 Disbursement There are four disbursements throughout the project duration: • An advance of 25% for approved capital expenditure to be paid out before project commencement date • 25% of the approved grant amount to be paid out upon verification of half yearly milestone. • 25% of the approved grant amount to be paid out at the end of project upon verification of commercial ready prototype. • Final 25% of the approved grant amount to be paid out at the end of project upon verification of creation of at least 3 IP.
MGS Under RMk10 Funding
Only project costs directly related to meeting the objectives of the declared R&D / system development work are eligible for MGS funding. Disbursements will only be made on full submission of project progress and expenses report including the following: Certified pay slips and EPF / SOCSO statements Receipts for IP registration, rental of research facilities and equipment / software purchased Declaration that the proposed R&D / system development work was conducted in its entirety by the company Compliance to all MSC Malaysia Status conditions throughout the funding period
MGS Approval Process People Applicant
Submit Final Draft and fee
Draft application, NDA, RoC
Letter of award or rejection
NDA, verify shareholding and review draft
Verify MSCStatus & location
Issue LoC Identify and appoint assessors
NDA with all assessors
MGS Technical Assessment Criteria Does the proposed project have R&D or systems development work of significance in that technology field and would the company acquire new knowledge and skills? Is the proposed product a unique innovation or a modification of similar product in the market? Are the project activities, milestones, resource allocations and timelines realistic and achievable? Have the key project risks been adequately identified and is there a credible risk management plan? Does the project team have the required breadth and depth as well as the requisite experience and background / track record to deliver the project? Is there active involvement of Malaysian knowledge workers in the core project elements? Are the proposed equipment, facilities and other support relevant to the project?
MGS Commercial Assessment Criteria Has the company defined its target market accurately and are there credible projections of future market growth?
Does the company have a clear understanding of the competitive landscape within their target markets and have they drawn up a credible positioning strategy for their product vis-à-vis competitors? Can the positioning strategy be supported by the proposed product pricing, features, performance and delivery? Has clear sales targets and market share goals been established in terms of geography and timelines? To what extent can the project outputs potentially increase exports and replace imports?
Are there marketing, manufacturing and licensing arrangements? Have legal and trade barriers been addressed? Is there adequate marketing expertise available on the project team? Is future growth supported by marketing / sales expansion?
MGS Financial Assessment Criteria Is there integrity in cost estimates? Is there reasonableness in the financial assumptions? Is there evidence of financial management capabilities and resources? How healthy is the applicant’s financial standing?
MGS ACHIEVEMENT RMK9 Key Accomplishment: Funded 70 projects totaling
Success as of 21 April 2010 : Over 778 trained knowledge workers in R&D
8 Companies listed on Bursa
14 International and 16 local awards achieved
Malaysia with total Market Capitalisation of
70 patents, 60 trademarks, 63 copyrights, 8 industrial designs filed
39 out of 59 completed projects made sales. Commercialization rate at 66.1%.
(as of April 2011)
RM291.11 Million revenue generated from 59 completed projects (total investment of RM 45,669,344). ROI of 637%.
The private sector will be the main driver of growth in market-led investment and production increasingly dominated by high value added goods and services in a competitive environment.
Extract from NEM report
Thank you! Pak Mei Yuet Senior Manager Technology and Research Business Unit ([email protected]
For full details of the MGS grant & past MGS grant recipients, please check out http://www.mscmalaysia.my/topic/R&D+Grant+Scheme